Property on outskirts turns exorbitant in Lucknow

LUCKNOW: It has become difficult to buy property within city limits. Indicating growing demand for affordable land, bullish realty growth seems noticeable in the semi-urban and urban parts of the city in the past one year. Residential plot prices beyond municipal corporation limits (beyond 8km from GPO crossing) have gone up by at least 15%. Within the city, the increase has remained limited to about 10%.

With this development, investing in a plotting scheme or dream to set up a plush farmhouse along the highway becomes an extravagant proposition.

If higher number of transactions (buying and selling) is recorded in an area, DM circle rates of the location are revised accordingly. “Steep increase in circle rates is clear indication of increased realty activity in an area,” explained a sub-registrar at registrar office.

Mushrooming plotting schemes and apartment projects around Sultanpur road and Rae Bareli road have jacked up the overall circle rate of the two expanding residential clusters uniformly.

Steep hikes have also been observed sporadically in the vicinity of Telco, located on Dewa road, almost 27km away from main Hazratganj; in Behta a village located across Kursi road and on some patches along Sitapur road.

After the announcement of Kisan Path, rates have soared significantly and land usage is being converted from agricultural into residential along Indira Canal and villages around Telco and Juggaur canal regulator have attracted several investors.

“Though Kisan Path will take years to come up, speculative market conditions have pushed circle rates upwards,” said a sub-registrar. During official surveys, impact of major infrastructure project is considered only when work gets completed and connectivity of a location improves.

Agricultural land price in semi-urban (between 8km from GPO upto 12km from GPO) and rural parts (over 12km from GPO) have gone up by 20% in Lucknow district.

Land aggregator from Chinhat area K K Mishra said, “The prevalent land rates are three to four times higher than the revised circle rates. I think more interactions will be held with local population before revising rates. At some places there is no rationale behind steep increase.”

BOX

REGISTRY SURCHARGE

Apart from additional stamp duty, people will also have to pay additional Rs 10,000 as service charge at the registry office. So far the fee was only Rs 10,000 which has been doubled. Visitors rue lack of facility and basic amenities despite having to pay increased fee.

OUT OF CITY LIMITS

Increase in non-agricultural per square feet rates in outskirts and effective hike